BPI Family sees 15% growth in consumer loans this year

MANILA, Philippines - BPI Family Savings Bank expects a 15-percent expansion in its consumer loan portfolio this year as a growing middle class and sustained low interest rates continue to fuel demand, a top bank executive said.

“We are tracking a P200-billion loan portfolio so far,” Cristina L. Go, senior vice president of BPI Family Savings Bank, said in a press briefing yesterday.

In 2014, the bank’s total loan portfolio reached P173 billion. The thrift bank of the Ayala Group accounts for 25 percent of the total loan portfolio of the Bank of the Philippine Islands (BPI), the country’s leading commercial bank in terms of profitability.

Mortgage loans accounted for 54 percent of the portfolio, with auto and SME loans sharing equal proportion.

Go said business confidence remains high while interests rates are seen to remain dormant in the next three to five years.

The country’s economic growth is still growing at a fast pace and fundamentals are strong, with the economy growing an average annual rate of over six percent, fastest over the past three decades.

The expanding middle class is considered among the youngest in the region, with spending habits related to digital technology, Go noted.

She said BPI Family has application and platforms in its website that allows bank clients to transact online or through mobile apps.

They also have platforms that allows borrowers, be it for mortgage, auto or SME loans, to know what real estate is affordable, what type of automobile is available depending on the borrower’s income stream, and what type of business is best suited for the borrower.

It has around 200,000 property or real estate sites accredited by the bank for clients to chose from, and 81 franchises to choose from new businesses.

“From a clients profile, we can advice you what cars is best suited for them, and the best payment schemes,” Ramon Noel S. Altamirano, bank vice president for product marketing, said.

Bank officials noted overseas Filipinos and younger clients tend to make auto and mortgage loans first.

“But there is a growing trend of youth wanting to be self-employed, thus seeking SME/franchising loans through our Ka-Negosyo loans,” he said.